Study: How anticorruption actions are implemented in the fiscal sector plan

Positive changes in fiscal sector are among main expectations of taxpayers, although the majority of actions in the Sector Anticorruption Action Plan for 2018-2020 were fulfilled fully or partially. This is the conclusion drawn by the authors of a report developed by the Institute for Development and Social Initiatives (IDIS) “Viitorul”, with the support of the United Nations Development Programme (UNDP) Moldova and Norwegian Ministry for Foreign Affairs, assessing the impact of the sector anticorruption action plan in fiscal area.

The report assessed the progress achieved by the stakeholders responsible for implementing the action plan, measured the impact of these activities, and suggested recommendations for efficient implementation of anticorruption measures in the fiscal area.

The Sector Anticorruption Action Plan for fiscal sector covers 16 actions, and the report authors assessed them by applying the following rating: “fulfilled action”, “partially fulfilled action”, “unfulfilled action”. The impact generated by fulfilling the actions from the plan were assessed with the following scores: “0” (lack of impact); “1” (low impact); “2” (medium impact); “3” (major impact).

As a result of the performed assessment, 7 actions were ranked as “fulfilled”, 6 actions – “partially fulfilled”, and 3 actions – “unfulfilled”. 

The impact analysis of the implemented actions from the Sector Anticorruption Action Plan reveals that four indicators registered a medium impact and other 5 indicators – low impact from the implementation of the corresponding actions.

According to the report, the stakeholders responsible for fiscal area did not succeed to ensure sufficient involvement of taxpayers and civil society in the decision-making process, as it was envisaged previously. At the same time, another measure suggested by authorities – provision of services by developing and implementing automated information systems, registered a medium impact on reducing corruption risks.

The report shows that the State Tax Service (STS) did to solve the problem of the accessibility of electronic services for users. At the same time, the efforts undertaken by the institution did not ensure taxpayers’ confidence for tax officers’ integrity, and the trainings on integrity issues attended by the employees of this structure did not contribute to disclosing corruption acts.

Referring to achievements, the report mentions the decreased level of tax evasion by implementing measures for managing and monitoring tax inspectors’ activities and increasing discipline among the taxpayers.

The report authors recommend the State Tax Service to maintain a permanent dialogue with taxpayers, business community representatives, civil society to discuss about policies, normative drafts, amendments, proposals for different areas/subjects. Another proposal refers to transferring some administrative-fiscal procedures to the online environment, hence allowing to carry out electronic fiscal controls (E-audit) and to derive added value from the data submitted by taxpayers.

The report also recommends improving fiscal control processes and increasing their efficiency, for the STS to further develop the “Case Management” automated information system, implementing modules referring to contestations and fiscal control, but also developing an integrated information system for fiscal administration, by unifying its components and modernizing its technical infrastructure.

The report for assessing the impact of the sector anticorruption action plan in the fiscal area was developed under the “Curbing corruption by building sustainable integrity in the Republic of Moldova” project, implemented by UNDP Moldova with the support of the Norwegian Ministry of Foreign Affairs.